Louisiana Attorney General Liz Murrill has announced a settlement with The Vanguard Group, Inc. regarding the use of environmental, social, and governance (ESG) policies by major investment firms. This agreement follows a lawsuit filed in 2024 by Louisiana and thirteen other states against BlackRock, State Street, and Vanguard.
The suit claims that these firms used their influence as shareholders in coal companies to limit coal production under environmental policy goals. According to the lawsuit, this strategy led to an artificial scarcity of coal, increasing its value and resulting in higher profits for the investment firms.
As part of the settlement terms, Vanguard will pay $29.5 million to the participating states, including Louisiana. The company has also agreed to cooperate with ongoing discovery efforts related to BlackRock and State Street, who remain defendants in the case. Additionally, Vanguard has committed not to use its shareholder position to direct business strategies at its portfolio companies.
“ESG and radical green energy scams have no place in Louisiana or this country. This good-faith settlement agreement with Vanguard sends an important signal to other investment firms that may attempt to use their influence to advance their own preferred environmental policies. Our focus will now shift to BlackRock and State Street,” said Attorney General Liz Murrill.
Murrill described the outcome as progress toward reducing energy prices and maintaining affordability for state residents. She expressed optimism about similar results as litigation continues against the remaining defendants.
Attorneys general from Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, Oklahoma, Texas, West Virginia, and Wyoming joined Louisiana as plaintiffs in this legal action.
Liz Murrill leads the Louisiana Department of Justice as attorney general according to the official website. The department serves as the state’s main legal office under an independently elected attorney general and provides services statewide. It works on preserving Louisiana’s culture and heritage through legal actions and focuses on protecting constitutional rights. With more than thirty years of experience in state government and judicial roles and high-profile court arguments, Murrill oversees efforts such as consumer protection and legal guidance for citizens across Louisiana.